Kalanithi Maran's Sun TV Network and Subhash Chandra's Zee Entertainment Enterprises, the two homegrown media companies, have managed to de-throne Rupert Murdoch's Star Group as the leading Asia-Pacific pay broadcaster, according to the latest ratings on the south asia market released by Media Partners Asia (MPA), an international media research agency. According to the MPA report, both Sun TV Network and Zee Entertainment are ranked first and second respectively in the pecking order of leading pay broadcasters in the region, while Star Group has moved down to the sixth position, from fourth place, which it held in 2008. The rankings are based on EBITDA (earnings before interest, taxes, depreciation and amortization).
According to the rankings, Sun TV Network's first position was based on an EBITDA of $ 133 million (Rs 638 crore) for the financial year 2008-09, while Zee Entertainment was ranked second with an EBITDA of $ 121 million (Rs 580 crore). According to MPA, Star Group's margins have been under pressure for some time due to an erosion of its earnings in India, its largest market in Asia, due to the higher content costs and competition from rivals such as Colors and Zee TV. Star has also been suffering losses in the China market and this has contributed to a slowdown in its growth.
The Star Group has EBITDA numbers of about $ 70 million (Rs 336 crore) on an unconsolidated basis, which includes earnings of its equity-accounted associates such as ESPN Star Sports, Phoenix Satellite TV, MCCS, ANTV, Hathway and Tata Sky. The MPA has projected a tough 2009-10 fiscal for television advertisers, broadcasters and direct-to-home (DTH) operators in India due to slowing advertising growth and lower revenue realisation. The latest MPA analysis on India says TV advertising will grow by only 6.5 per cent in 2009, compared with 15.6 per cent in 2008.
Friday, April 24, 2009
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